Ways to Finance Modular Home Construction Even in Bad Credit
Financing a modular home of any kind can be a difficult experience for those with poor credit. In a difficult economy, lenders want to be sure they aren’t taking any major chances when giving out loans and individuals with bad credit are often considered to be high risk. Even so, there are plenty of ways you can work towards financing a modular home with bad credit, and it doesn’t have to be as hard as it’s often made out to be.
Pull your Credit Report
Credit reports can be acquired in a variety of ways, and the most important thing you can do is ensure that you’re getting one from each of the three biggest credit. While some services will require you to purchase a subscription in order to access your credit report, you’re allowed one free report per year from each bureau, which can be acquired by visiting www.annualcreditreport.com. Keep in mind, however, that you typically have to pay a small subscription fee to see your credit score; it’s worth paying the extra money to see where you are and what needs fixing. Once you have this information in-hand, bring it to a credit counseling professional, as this will help them to assess your situation and make any necessary recommendations regarding financing a modular home.
Come Up with a Solid Down Payment
Purchasing a modular home is quite different in many ways from purchasing a typical home, as mobile homes depreciate in value, while the alternative tends to appreciate over time. As a result, lenders want to see a significant up-front down payment before handing out a loan, especially if they’re working with individuals who have poor credit. If you can put together a down payment of 20-30 percent of the final cost, you’ll have a much better chance of getting a loan to finance your purchase. Those who have poor credit and can’t afford a down payment will have a significantly more difficult time trying to get a loan than those who can.
Consider a Modular Home
The US Department of Housing and Development offers special loans to purchase or refinance a modular home to those who qualify and meet the necessary income limitations. Maximum loan rates can differ depending upon which type you need. The best way to go about looking into a loan for a modular home is to have a clear picture of what is you need before locating a dealer that complies with the Model HUD Home Installation Standards, as well as the any applicable state laws.
In case you still have question about modular homes, you may contact Legendary Homes Inc in Jackson, Michigan. A representative will be happy to assist you. Meanwhile you can check our modular home price sheets by signing up to our blog